Public auctions of tax deliquent properties to continue- Cee O

Feb 3-9, 2011

By Cha Monforte

Tagum City Mayor Rey Uy is not waiting for any tax amnesty relief for property owners as he rather wants that tax delinquent properties in the city be put in public auction which he said would be continuing this year following two successful auctions in his recent term.

He said that the two public auctions he had initiated in the last two years resulted to the increases of collections of real property taxes in the city and prompt tax payments from landowners.

The most budget-powerful mayor said that the next public auctions would be set on date recommended by the city’s finance committee.

Meanwhile, in separate interview, city treasurer Edgar de Guzamn said that for this year they are projecting to have three public auctions.

He bared that the city government was able to collect P5 million and P3 million from tax-delinquent real properties in 2009 and 2010 public auctions, respectively.

In the 2010 public auction, there were 12 tax-deliquent real properties that were indeed sold during the public bidding by the city government following the failure of the involved landowners to settle their delinquent real property taxes.

Under the city’s public auction scheme, the properties sold can however be redeemed by the landowners from the buyers by paying the amount of actual sale equivalent amount of bid of the winner-buyer plus 2 percent of the amount per month computed until the date of redemption. The redemption money goes to the buyer.

During the one-year redemption period, the landowners however can still enter to their properties and harvest fruits and products from thereon.

De Guzman said that the city government bid price of tax-delinquent properties is computed considering the total tax delinquency (total unpaid taxes based on assessed value) plus the costs of sale like for the notarization, publication and others.

“If the landowner fails to redeem his property, the city government will then issue the final deed of sale to the buyer, the one who earlier won the bidding being the highest bidder.” he added.

Filed under: Tagum City Mayor Rey Uy public auction, Tagum City Mayor Rey Uy public auction